Affirm partners with Apple Inc: ‘a big positive for $AFRM’

on Jun 11, 2024
  • Affirm Holdings teamed up with Apple Inc on Tuesday.
  • Mizuho analyst sees the partnership as a positive for $AFRM.
  • Affirm stock price is down some 35% versus its YTD high.

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Affirm Holding Inc (NASDAQ: AFRM) is in the green this morning after teaming up with Apple Inc (NASDAQ: AAPL).

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Details of Affirm-Apple partnership

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Buy now, pay later loans of $AFRM will be available to users of iPhones and iPads by the end of 2024. 

The partnership brings “ease, convenience, and security of Apple Pay” with “flexibility, transparency, and no hidden fee” of Affirm, said the financial technology company in an emailed statement today.

Affirm Holdings does not, however, expect the announcement to have a “material impact on revenue or gross merchandise volume in fiscal year 2025, as per its filing with the Securities & Exchange Commission on Tuesday. 

AFRM shares that do not currently pay a dividend yield are currently down some 35% versus their year-to-date high in early February. 

Apple deal is a positive for Affirm stock

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Dan Dolev – a senior Mizuho Securities analyst is all praise for the new deal Affirm signed with $AAPL on Tuesday. 

The news is a big positive for AFRM, especially since the stock traded down several times in the past when Apple announced its entry in BNPL.

Dolev reiterated his “buy” rating on Affirm stock this morning. His $65 price objective suggests potential for about a 100% gain from here. 

The analyst continues to see Affirm Holdings as a strong brand with a polished underwriting technology that may have been hard for Apple Inc to replicate. The fintech is no longer the exclusive provider of buy now, pay later loans at Walmart as Invezz reported here.

Affirm-Apple team up may be bad news for PayPal

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Shares of PayPal Holdings Inc are losing following the Affirm-Apple news on Tuesday. 

The financial technology stock may be taking a hit also because the iPhone maker introduced Apple Pay online this week that puts it in direct competition with $PYPL that has already lost its crown of favoured in-store mobile wallet for retail consumers to Apple Pay (read more).

The news arrives a month after Affirm reported its financial results for the first quarter that topped Street estimates and issued upbeat guidance for the future. Max Levchin – its chief executive said at the time:

Our consumers love Affirm. We can’t wait to deliver a few more amazing products and services in the coming weeks and months … We feel comfortable executing in current economic and interest rate environment. We remain firmly in control of credit outcomes.

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